Finance

Cloudflare stock tanks follow first quarter results, below par guidance

Published

2 months ago

May 3, 2024

Cloudflare Stock Tanks Following Q1 Results, Subpar Guidance - Here's Why

Cloudflare Stock Tanks Following First Quarter Results, Underperforming Guidance - Here's Why — Cloudflare Stock Tanks Following First Quarter Results, Underperforming Guidance – Here’s Why

Cloudflare, Inc. (NYSE:NET) announced its first-quarter financial results after the bell on Thursday. Be here the details.

Cloudflare reported quarterly earnings of 16 cents per share, beating analysts’ consensus estimate of 13 cents by 23.08%. The company closed quarterly revenue of $378.6 million, which topped analysts’ consensus estimate of $373.09 million. It represents a growth of 30.47% compared to the previous year period.

Free cash flow was $35.6 million, or 9% of sales, compared to $13.9 million, or 5% of sales, in the first quarter of 2023. Cash and cash equivalents totaled $1,716 as of March 31, 2024 billion.

“The first quarter marked a strong start to the year as we grew revenue 30% year-over-year to $378.6 million, fueled by record numbers of net new customers exceeding $100,000, $500,000 year-over-year , and $500,000 spent $1 million with Cloudflare annually I am incredibly proud of the fact that our team has been able to continue to build our network, serve increasingly large customers and launch entirely new product categories, including in AI. while also remaining disciplined with our gross and operating margins and free cash flow,” the company said Matthew PrinsCEO of Cloudflare.

View more earnings on NET

Outlook: Cloudflare expects second-quarter revenue between $393.5 million and $394.5 million, compared to the estimate of $393.4 million, and adjusted earnings of about 14 cents per share versus the estimate of 13 cents.

The company expects full-year 2024 revenue of between $1.648 billion and $1.652 billion, compared to the estimate of $1.653 billion, and adjusted earnings of between 60 cents and 61 cents per share, compared to the estimate of 60 cents.

NET Price Action: According to Benzinga ProShares of Cloudflare are down 14.20% after hours to $76.30 at time of publication Thursday.

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This article Cloudflare Stock Tanks Following First Quarter Results, Underperforming Guidance – Here’s Why originally appeared on Benzinga.com